KUALA LUMPUR (May 20): Both the federal and state governments have agreed to resolve the Selangor water impasse, which has been dragged for more than eight years, within two months.

In a statement, Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili assures that the Langat 2 water treatment project and the distribution system would be continued.

According to the minister, the Selangor government has promised to honour all the commitments made to expedite the issuance of necessary approvals for permits and land required for the Langat 2 Water Treatment Plant and its distribution system.

Also he forewarns that Putrajaya would consider legal action if the state government keep postponing the issuance of permits for the project.

The state government has agreed to revive the master agreement, which Selangor declined to grant an extension.

The master water agreement was signed between former Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim and Ongkili. However, the state government did not grant an extension to the agreement when it lapsed in March.

Azmin, who took over the helm of the state in September last year, had said the state government had nixed the agreement that was signed on Sept 12, 2014 noting that the federal government was attempting to take over 26,000km of state assets in the form of water pipes and land, which contravened the master agreement.  

Earlier Ongkili had given the Selangor government an ultimatum until April 30 to respond on the master agreement, after the finalisation of the deal was postponed several times from the last deadline on Jan 12. The delay on finalising the master agreement was due partly to problems arising from the transfer of two water assets in Bukit Nenas and Semenyih to Pengurusan Aset Air Berhad (PAAB).

The federal and state government had a meeting yesterday to discuss on the long-drawn water saga, according to the statement.

“I am pleased that yesterday’s meeting was fruitful and the Menteri Besar agreed to conclude the restructuring exercise as soon as possible by reviving the Master Agreement,” said Ongkili.

“We both also agreed to relook at the outstanding issues and find amicable solutions for the sake of the wellbeing of the people of Selangor, Kuala Lumpur and Putrajaya who are affected by water supply uncertainty.

“The federal government is concerned that the stalled restructuring exercise and Langat 2 project have affected water supply security in the three regions of Selangor, Kuala Lumpur and Putrajaya where reserve margin for treated water is about 2%,” he said.

Ongkili said the uncertainty of future water supply had forced the authorities to take cautious measures in approving development projects that required water supply and to date, 803 projects including amenities, facilities, housing, commercial centres and businesses in Selangor, Putrajaya and Kuala Lumpur have stalled.

Ongkili had given the Selangor government an ultimatum until April 30 to respond on the master agreement, after the finalisation of the deal was postponed several times from the last deadline on January 12.

This was due to problems arising from the transfer of two water assets in Bukit Nenas and Semenyih to Pengurusan Aset Air Berhad (PAAB).

Ongkili had said Putrajaya was prepared to offer a RM2 billion allocation to Selangor to help take over the equity of the water concession companies if it could provide other assets which had adequate value to replace the two assets in question.

According to Ongkili, at the meeting between officers on both sides, the Selangor government had identified four other water assets whose ownerships could be transferred but the deal was still not finalised.